Advertising promotion and other aspects of integrated marketing communications UixDnxNgRJb5dQkrwlYT3N7JnjxRB2i5 pdf

rPreface Part 1: Integrated Marketing Communications: Processes, Brand xvChapter 1: Overview of Integrated Marketing Communications and the Marcom Challenge: B2C and B2B Applications of

Terence A Shimp

University of South Carolina

Advertising, Promotion,

and Other Aspects of

Integrated Marketing Communications

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To my dear wife, Judy, who has been my number-one supporter over theyears, and who helped me on this edition by locating advertising illustra-tions and other visuals Since the previous edition, I have been blessedwith two additional grandsons, John Parker and Spencer James—now thetwenty-first-century version of a basketball team is in place (my brothersknow what I refer to) Also, to all of my family members, past and present,

to whom I owe whatever positive character traits I may possess, a heartfeltword of appreciation and love

Preface xv

1 Overview of Integrated Marketing Communications and the Marcom Process 2

2 Marcom’s Challenges: Enhancing Brand Equity, Influencing Behavior,

and Being Accountable 30

3 Ethical, Regulatory, and Environmental Issues in Marketing Communications 54

Targeting, Positioning, Objective Setting, and Budgeting 87

4 Marcom Targeting 88

5 Marcom Positioning 118

6 Marcom Objective Setting and Budgeting 144

7 Facilitation of Product Adoption, Brand Naming, and Packaging 168

8 On- and Off-Premise Signage and Point-of-Purchase Communications 212

9 Overview of Advertising Management: Messages, Media, and Measurement 238

10 Creating Effective and Creative Advertising Messages 262

11 Selecting Message Appeals and Picking Endorsers 292

12 Assessing Ad Message Effectiveness 330

13 Planning for and Analyzing Advertising Media 364

14 Using Traditional Advertising Media 406

15 Employing the Internet for Advertising 438

16 Using Other Advertising Media 464

17 Sales Promotion and the Role of Trade Promotions 488

18 Consumer-Oriented Promotions: Sampling and Couponing 526

19 Consumer-Oriented Promotions: Premiums and Other Promotional Methods 552

20 Marketing-Oriented Public Relations and Sponsorships 576

Glossary 601

Name Index 609

Subject Index 615

v

rPreface Part 1: Integrated Marketing Communications: Processes, Brand xv

Chapter 1: Overview of Integrated

Marketing Communications and the

Marcom Challenge: B2C and B2B Applications of IMC 2

The Nature of Marketing Communications 4

Marketing Communications at the

Brand Level 4

The Integration of Marketing Communications 5

What Exactly Is IMC? 7 • The Payoff from

IMC: The Value of Synergy 7 • Key IMC

Features 8

Global Focus:Baby Carriages as Touch Points 12

IMC Focus:An Authority Declares That Positioning Is

Changes in Marketing Communication Practices

15 • Obstacles to Implementing IMC 16

A Model of the Marketing Communications

Decision-Making Process 17

Fundamental Marcom Decisions 18 • Marcom

Implementation Decisions 20 • Marcom

Outcomes 23 • Program Evaluation 23

Chapter 2: Marcom’s Challenges:

Enhancing Brand Equity, Influencing

Behavior, and Being Accountable 30

Marcom Challenge: Harley-Davidson—An Iron Horse

Desired Outcomes of Marcom Efforts 32

The Concept of Brand Equity 32

A Firm-Based Perspective on Brand Equity 33

• A Customer-Based Perspective on Brand Equity 33

Global Focus:When Brand Marketers Must Deal with

How Can Brand Equity Be Enhanced? 40

IMC Focus:Neuromarketing and the Case of Why

What Benefits Result from Enhancing Brand Equity? 44 • Characteristics of World-Class Brands 44

Affecting Behavior and Achieving MarcomAccountability 46

Difficulty of Measuring Marcom Effectiveness

47 • Assessing Effects with Marketing-Mix Modeling 49

Ethical Issues In Marketing Communications 57

The Ethics of Targeting 58

IMC Focus:An Adman’s Struggle with Joe Camel and

vii

Ethical Issues in Advertising 62 • Ethical

Issues in Public Relations 65 • Ethical Issues

in Packaging and Branding 66 • Ethical Issues

in Sales Promotions 67 • Ethical Issues in

IMC Focus:A Rigged Promotion for Frozen Coke 69

Regulation of Marketing Communications 70

When Is Regulation Justified? 70 • Regulation

of Marketing Communications by Federal Agencies 71 • State Agencies’ Regulation of Marketing Communications 75 • Advertising Self-Regulation 76

Environmental, or “Green,” MarketingCommunications 77

Green Marketing Initiatives 77 • Guidelines for Green Marketing 81

Part 2: The Fundamental Marcom Decisions:

Marcom Challenge: Esprit and Gap—No Longer

Targeting Customers and Prospects 90

The Changing Age Structure 100

IMC Focus:Tweens and Materialism 105

Global Focus:Can Renault Develop a Hip Image? 106

The Ever-Changing American Household 109 •

Ethnic Population Developments 109

IMC Focus:A Special Beverage for Latino Consumers,

Positioning in Theory: A Matter of

Creating Meaning 120

The Meaning of Meaning 121 • Meaning

Transfer: From Culture to Object to Consumer

IMC Focus:Diamonds (Given to Yourself) Are Forever 130

Implementing Positioning: Know Thy Consumer 130

The Consumer Processing Model (CPM) 131 • The Hedonic, Experiential Model (HEM) 137

Chapter 6: Marcom Objective Setting

Marcom Challenge: Brands with the

Setting Marcom Objectives 146

The Hierarchy of Marcom Effects 147

IMC Focus:The Cat(fight) Is a Dog 150

Requirements for Setting Suitable Marcom Objectives 152 • Should Marcom Objectives Be Stated in Terms of Sales? 153

r

Part 3: Marcom for New Products, Store Signage, and

Chapter 7: Facilitation of Product

Adoption, Brand Naming, and

Marcom Challenge: Absolut Wanna Be Becomes

Product Characteristics That Facilitate Adoption

173

Global Focus:Washing Machines for the Masses

Managing the Diffusion Process 179

Stimulating Word-of-Mouth Influence 180

Strong and Weak Ties 180 • Opinion Leaders

and Market Mavens 181 • Avoid Negative

Information 182

Creating “Buzz” 183

Some Anecdotal Evidence 183 • Formal

Perspective on Buzz Creation 185 • Using the

Internet for Creating Buzz 188

Brand Naming 189

What Constitutes a Good Brand Name? 189 •

The Brand-Naming Process 193 • The Role of

Logos 195

IMC Focus:Selecting a Name for a New Airline 195

Packaging Structure 197 • Evaluating the

Package: The VIEW Model 200

IMC Focus:Illustrations of Workable Packages 203

Marcom Challenge: “Shopping Buddy”—

Out-of-Home (Off-Premise) Advertising 214

Billboard Advertising 215 • Buying Home Advertising 215 • Billboard

Out-of-Advertising’s Strengths and Limitations 216 • Measuring OOH Audience Size and

Characteristics 217

Global Focus:Live Soccer Players on Japanese Billboards 217

A Case Study of Billboard Effectiveness 218

On-Premise Business Signage 219

Types of Signs 220 • The ABCs of On-Premise Signs 220 • Don’t Be a Fool 221

Point-of-Purchase Advertising 221

The Spectrum of P-O-P Materials 222 • What Does P-O-P Accomplish? 222 • P-O-P’s Influence on Consumer Behavior 223

IMC Focus:ABC, CBS, Fox, NBC, and Now Wal-Mart

A Vital Result of P-O-P: Increased In-Store Decision Making 226 • Evidence of Display Effectiveness 230 • The Use and Nonuse of P-O-P Materials 232 • Measuring In-Store Advertising’s Alliance 232

Chapter 9: Overview of Advertising

Management: Messages, Media, and

Marcom Challenge: Is Advertising Rocket Science? 238

The Magnitude of Advertising 240

IMC Focus:B2B Advertising on Television 241

Advertising-to-Sales Ratios 244 • Advertising

Effects Are Uncertain 245

Advertising Functions 246

Informing 246 • Influencing 247 • Reminding

and Increasing Salience 247 • Adding Value

247 • Assisting Other Company Efforts 248

Global Focus: A Global Advertising Campaign

The Advertising Management Process 249

Managing the Advertising Process: The Client Perspective 249 • The Role of Advertising Agencies 250 • Agency Compensation 253

Ad-Investment Considerations 254

The Case for Investing in Advertising 254 • The Case for Disinvesting 255 • Which Position Is More Acceptable? 255

Chapter 10: Creating Effective and

Marcom Challenge: Two of the Greatest Ads in the

Creating Effective Advertising 265

The Role of Creativity 265 • Advertising

Successes and Mistakes 267

Advertising Plans and Strategy 269

A Five-Step Program 269 • Constructing a

Creative Brief 271

IMC Focus: How Well Do You Know Advertising

Alternative Styles of Creating Advertising 274

Unique Selling Proposition Creative Style 275 •

Brand Image Creative Style 275 • Resonance

Creative Style 276 • Emotional Creative Style

277 • Generic Creative Style 277

Global Focus:A Brand Image for Guinness Beer 277

Preemptive Creative Style 278 • Section

Summary 279

Means-End Chaining and the Method of Laddering

as Guides to Creative Advertising Formulation 279

The Nature of Values 280 • Which Values Are

Most Relevant to Advertising? 281 •

Advertising Applications of Means-End Chains:

The MECCAS Model 282 • Identifying

Means-End Chains: The Method of Laddering 284 •

Practical Issues in Identifying Means-End

Chains 286

Corporate Image and Issue Advertising 287

Corporate Image Advertising 287 • Corporate

Issue (Advocacy) Advertising 287

Chapter 11: Selecting Message Appeals

Enhancing Processing Motivation, Opportunity,

and Ability 294

Motivation to Attend to Messages 296

• Motivation to Process Messages 298 •

Opportunity to Encode Information 298

• Opportunity to Reduce Processing Time 299 •

Ability to Access Knowledge Structures 299

• Ability to Create Knowledge Structures 299 •

Section Summary 302

The Role of Endorsers in Advertising 302

Celebrity Endorsers 302 • Typical-Person

Endorsers 303

Global Focus:Controversial Uses of LeBron James in

Endorser Attributes: The TEARS Model 304 • Endorser Selection Considerations: The “No Tears” Approach 306 • The Role of Q Scores 309

The Role of Humor in Advertising 310

IMC Focus:Selection of the “Mark” Character in

Appeals to Consumer Fears 312

Fear-Appeal Logic 313 • Appropriate Intensity

313 • The Related Case of Appeals to Scarcity 313

Appeals to Consumer Guilt 314The Use of Sex in Advertising 315

What Role Does Sex Play in Advertising? 315

• The Potential Downside of Sex Appeals in Advertising 316

Subliminal Messages and Symbolic Embeds 317

A Cautious Challenge 318

The Functions of Music in Advertising 320The Role of Comparative Advertising 320

Is Comparative Advertising More Effective? 321

• Considerations Dictating the Use of Comparative Advertising 322

Overview of Advertising Research 332

It’s Not Easy or Inexpensive 332 • What Does Advertising Research Involve? 332

IMC Focus: Testing TV Commercials in Prefinished Form 333

Industry Standards for Message Research 334 • What Do Brand Managers and Ad Agencies Want to Learn from Message Research? 336 • What Kind of Measures Are Used in Message Research? 336

Measures of Recognition and Recall 338

Starch Readership Service 339 • Bruzzone Tests 342

Global Focus:Is What’s Good for Vodka Good

Day-After Recall Testing 344

Emotional Reaction Measured via Physiological

The Galvanometer 347 • The Pupillometer 347

Measures of Persuasion 347

The Ipsos-ASI Next*TV Method 348 • The

ARS Persuasion Method 348

Measures of Sales Response (Single-Source

Conclusion 1—All Commercials Are Not

Created Equal: Ad Copy Must Be Distinctive

353 • Conclusion 2—More Is Not Necessarily

Better: Weight Is Not Enough 355 •

Conclusion 3—All Good Things Must End:

Advertising Eventually Wears Out 358 •

Conclusion 4—Don’t Be Stubborn: Advertising

Works Quickly or Not at All 359

Chapter 13: Planning for and Analyzing

Marcom Challenge: Is Super Bowl Advertising

Some Useful Terminology: Media Versus

Vehicles 366 • Messages and Media: A

Hand-in-Glove Relation 366 • Selecting and Buying

Media and Vehicles 367

The Media-Planning Process 368

IMC Focus:Esuvee and SUV Safety 369

Selecting the Target Audience 369

Specifying Media Objectives 370

Reach 370 • Frequency 371 • Weight 373 •

Continuity 380 • Recency Planning (a.k.a The

Self-Space Model) 382 • Cost Considerations

385 • The Necessity of Making Trade-Offs 386

Media-Planning Software 387

Global Focus:Searching for Media Options

Hypothetical Illustration: Esuvee’s June 2006

Magazine Schedule 389

The Diet Dr Pepper Plan 392

Campaign Target and Objectives 393 • Creative

Strategy 393 • Media Strategy 393

SAAB 9–5’s Media Plan 396

Campaign Target and Objectives 396 • Creative

Strategy 396 • Media Strategy 397

Olympus Camera Media Plan 398

Campaign Objectives 398 • The Strategy 398

• Media and Vehicles 399 • Results 400

IMC Focus:The Rising Cost of Super Bowl Advertising 428

Infomercials 430 • Brand Placements in Television Programs 431 • Television Audience Measurement 431

Advertising Formats 442

Display or Banner Ads 444Rich Media: Pop-Ups, Interstitials, Superstitials, and Video Ads 446

Global Focus:Nescafé’s Viral E-mail Effort in Argentina 449

E-mail Magazines (E-zines) 450 • The Special

Case of Wireless E-mail Advertising 451

Search Engine Advertising 453

The Fundamentals of Search Engine Advertising

453 • Purchasing Keywords and Selecting

Content-Oriented Web Sites 455

IMC Focus:Enhancing Brand Equity via Search

SEA Is Not without Problems 456

Advertising via Behavioral Targeting 457

Measuring Internet Ad Effectiveness 457

The Tools of Internet Audience Measurement

458 • Metrics for Measuring Internet Ad

Performance 459

Chapter 16: Using Other Advertising

Marcom Challenge: Some Definitions

Direct Advertising 466

Postal Mail Advertising 466 • Audio-Video Advertising 474

Indirect Forms of Advertising 474

Advertising Directed to Homes and Workplaces 474

Advertising Delivered at Private and Public Venues 476

Branded Entertainment: Brand Placements in Movies and Other Media 476

Global Focus:Dubbing in Brands to Fit the Needs

IMC Focus:The Human Body as an Ad Medium 482

Part 5: Promotion Management, Marketing-Oriented

Chapter 17: Sales Promotion and

Marcom Challenge: It’s a Matter of Power—

What Exactly Is Sales Promotion? 490 •

Promotion Targets 491

Global Focus:Driving Sales for Fiat in Brazil 493

Increased Budgetary Allocations to Promotions 493

Factors Accounting for the Shift 494 • An

Unintended Consequence of Growth: New

Accounting Rules 497

What Are Sales Promotion’s Capabilities and

Limitations? 498

What Promotions Can Accomplish 498 • What

Promotions Cannot Accomplish 503

The Role of Trade Promotions 503

Ingredients for a Successful Trade Promotion

Program 504

Trade Allowances 505

Major Forms of Trade Allowances 505 •

Undesirable Consequences of Off-Invoice

Allowances: Forward Buying and Diverting 509

Efforts to Rectify Trade Allowance Problems 511

Efficient Consumer Response (ECR) 512 •

Category Management 512 • Everyday Low

Pricing (EDLP) 514 • Pay-for-Performance Programs 515

IMC Focus:Pay-for-Performance at Nestlé 516

Customizing Promotions: Account-Specific Marketing 517

Generalizations about Promotions 518

Generalization 1: Temporary retail price reductions substantially increase sales—but only

in the short-term 518 • Generalization 2: The greater the frequency of deals, the lower the height of the deal spike 519 • Generalization 3:

The frequency of deals changes the consumer’s reference price 519 • Generalization 4:

Retailers pass through less than 100 percent of trade deals 519 • Generalization 5: Higher- market-share brands are less deal elastic 519 • Generalization 6: Advertised promotions can result in increased store traffic 520 • Generalization 7: Feature advertising and displays operate synergistically to influence sales

of discounted brands 520 • Generalization 8:

Promotions in one product category affect sales

of brands in complementary and competitive categories 520 • Generalization 9: The effects

of promoting higher- and lower-quality brands are asymmetric 521

Chapter 18: Consumer-Oriented

Promotions: Sampling and Couponing 526

Marcom Challenge: Sampling and Couponing to

Why Use Consumer Promotions? 528 • Brand

Management Objectives and Consumer Rewards

529 • Classification of Promotion Methods 531

Global Focus:M & M’s Global Color Vote 533

Major Sampling Practices 534 • When Should

Sampling Be Used? 538 • Sampling Problems

538

IMC Focus:Sampling Toilet Tissue 538

Couponing Background 539 •

Point-of-Purchase Couponing 542 • Mail- and

Media-Delivered Coupons 545 • In- and On-Pack

Coupons 546 • Online Couponing 546 • The

Coupon Redemption Process and Misredemption

546

The Role of Promotion Agencies 548

The Rise of the Online Promotion Agency 549

Free-with-Purchase Premiums 555 • Mail-In

Offers 555 • In-, On-, and Near-Pack

Premiums 556 • Self-Liquidating Offers 556 •

Phone Cards 557

Global Focus:Barq’s Root Beer and Russian Knickknacks 557

What Makes a Good Premium Offer? 558

Rebates and Refunds 560

Phantom Discounts 561 • Rebate Fraud 562

IMC Focus:The Use of Rebates by an Enterprising Realtor 562

Sweepstakes and Contests 563

Sweepstakes 563 • Contests 563 • Online Sweeps and Contests 564

Continuity Promotions 564Overlay and Tie-In Promotions 566

Overlay Programs 566 • Tie-In Promotions 567

Retailer Promotions 567

Retail Coupons 567 • Frequent-Shopper Programs 568 • Special Price Deals 568 • Samples and Premiums 568

Evaluating Sales Promotion Ideas 569

A Procedure for Evaluating Promotion Ideas 569

• Postmortem Analysis 570

Chapter 20: Marketing-Oriented Public

Marcom Challenge: The Smell of Bowling Alleys—Beer, Smoke, Musty Shoes, and Scented Bowling Balls 576

Global Focus:Negative Publicity for Coca-Cola’s Dasani

The Special Case of Rumors and Urban Legends 585

Responding to a Dynamic World

The field of marketing communications is ever-changing Brand managers

contin-ually attempt to gain advantage over competitors and endeavor to achieve larger

market shares and profits for the brands they manage Marketing

communica-tions, or marcom, is just one element of the marketing mix, but advertising,

promo-tions, marketing-oriented public relapromo-tions, and other marcom tools perform

increasingly important roles in firms’ quests to achieve financial and nonfinancial

goals Marcom practitioners are confronted with the rising costs of placing ads in

traditional advertising media (television, magazines, and so on) and are

aggra-vated by the ever-growing clutter when advertising in these media For these

rea-sons, advertising and promotion budgets are beginning to shift away from

traditional media and toward the Internet, which in recent years has become an

important advertising medium both as a means of accessing difficult-to-reach

groups (such as college-age consumers) and in providing numerous options for

presenting advertising messages and promotional offers to these groups

Marketing communicators realize now more than ever that their advertising,

promotion, and other marcom investments must be held financially accountable

Companies continually seek more effective ways of communicating effectively

and efficiently with their targeted audiences Marketing communicators are

chal-lenged to use communication methods that will break through the clutter, reach

audiences with interesting and persuasive messages that enhance brand equity

and drive sales, and assure that marcom investments yield an adequate return on

investment In meeting these challenges, companies increasingly embrace a

strat-egy of integrated marketing communications whereby all marcom elements must

be held accountable for delivering consistent messages and influencing action

Focus of the Text

Whether a student is taking this course to learn more about the dynamic nature of

this field or to make a career in advertising, promotions, or some other aspect

of marketing, Advertising, Promotion, and Other Aspects of Integrated Marketing

Com-munications will provide him or her with a contemporary view of the role and

importance of marketing communications The text emphasizes the role of

inte-PREFACE

xv

grated marketing communications (IMC) in enhancing the equity of brands andprovides thorough coverage of all aspects of an IMC program: advertising, promo-tions, packaging and branding strategies, point-of-purchase communications, mar-keting-oriented public relations, word-of-mouth buzz creation, and event- andcause-oriented sponsorships These topics are made even more accessible in thisedition through expanded use of examples and applications Appropriate academictheories and concepts are covered in the text to provide formal structure to the illus-trations and examples.

Advertising, Promotion, and Other Aspects of Integrated Marketing Communications

is intended for use in undergraduate or graduate courses in marketing cations, advertising, promotion strategy, promotion management, or othercourses with similar concentrations Professors and students should find this booksubstantive but highly readable, eminently current but also appreciative of theevolution of the field Above all, marketing communications practice in its variedforms is blended with research and theory Throughout its previous six editions,this book has always attempted to balance its coverage by examining marketingcommunications from both the consumer’s and marketer’s vantage points Thisedition, however, represents a slight shift of emphasis to focus more than ever onmanagerial aspects of marketing communications Business-to-business (B2B) ori-ented marketing communications also receives greater attention in this editionthan before

communi-Changes and Improvements

in the Seventh Edition

The seventh edition of Advertising, Promotion, and Other Aspects of Integrated

Marketing Communications reflects many changes beyond those described so far.

The entire textbook has been thoroughly updated and reflects the followingemphasis:

• The text provides state-of-the-art coverage of major academic literature andpractitioner writings on all aspects of marketing communications These writ-ings are presented at an accessible level to students and illustrated with copi-ous examples and special inserts—Marcom Challenge vignettes, IMC Focusboxes, and Global Focus inserts

• Marcom Challenge—Each chapter opens with a factual anecdote that

corre-sponds with the thematic coverage of the chapter and serves to pique dents’ interest and illustrate the type of material to follow

stu-• IMC Focus—These features have been updated to further illustrate key

IMC concepts within each chapter by using real-company situations thatshowcase how various aspects of marketing communications are put intopractice

• Global Focus—These updated boxed features enhance the text’s global

per-spective and spotlight the international application of marcom principles

• The text retains the same number of chapters (20) as in the sixth edition, butsome chapters have been substantially rewritten or rearranged to reflect amore logical progression of material covered The following updates andimprovements are reflected in this new edition:

• Chapter 1 expands its coverage of IMC fundamentals and also provides amodel of the marcom process that makes a useful framework for comprehend-ing the strategic and tactical aspects of marketing communications

• Marcom’s role in enhancing brand equity and influencing behavior receivesexpanded coverage in Chapter 2 The most important addition to this chapter

is increased emphasis on achieving marcom accountability, including

discus-sion of return on marketing investment and efforts to measure marcom

effec-tiveness

• In view of the growing importance of ethical issues, Chapter 3 provides

in-depth coverage of ethical issues in marketing communications along with

marcom-related regulatory and environmental issues This chapter is moved

front and center in this edition to better stress its importance

• Chapters 4 through 6 focus on the fundamental marcom decisions that are

based on the marcom-process model introduced in Chapter 1 These chapters

include detailed coverage of marcom targeting (Chapter 4), positioning

(Chapter 5), and objective setting and budgeting (Chapter 6) Chapter 4

includes a thorough update of demographic facts and figures, Chapter 5

inte-grates the coverage of positioning with fundamentals of consumer behavior

and the concept of meaning creation, and Chapter 6 augments discussion of

marcom budgeting

• Chapter 7 combines material previously covered in two chapters that discusses

marcom’s role in facilitating product adoption and the importance of brand

naming and packaging

• Chapter 8 is a new and unique chapter that explores the role of on- and

off-premises signage, out-of-home advertising, and point-of-purchase

communi-cations—all of which generally are neglected or receive minimal coverage in

most advertising and marcom texts

• In its overview of advertising management, Chapter 9 examines the role of

messages, media, and measurement Added coverage is given to the relation

between share of voice and share of market and the role of advertising

elas-ticity

• Chapter 10 lays out the fundamentals and importance of advertising creativity,

and Chapter 11 then deals with the message and endorser factors that

influ-ence message processors’ motivation, opportunity, and ability to process ad

messages

• Expanded and improved coverage of measures of advertising effectiveness is

the focus of Chapter 12

• Chapter 13 provides detailed treatment of media planning and analysis

Importantly, this chapter is presented before coverage of specific advertising

media, whereas in previous editions it was presented after that coverage By

presenting the media planning and analysis material first, it is possible to

employ a common set of concepts, terms, and metrics in describing the specific

media covered in the chapters that follow

• Chapters 14 (traditional ad media), 15 (Internet advertising), and 16 (other ad

media) offer in-depth coverage of all forms of advertising media The material

is thoroughly updated with numerous applications and illustrations

• Coverage of Internet advertising (Chapter 15) is greatly expanded and

updated in view of the profound changes that have transpired since the

previ-ous edition This new chapter is especially current in its treatment of search

engine advertising, wireless forms of Internet advertising, and the role of

blogs and podcasts

• Chapter 16 expands its coverage of other forms of ad media, including

mate-rial related to direct mail and database marketing, videogame advertising

(adver-gaming), brand placements in movies and TV programs, and cinema

advertising

• Chapter 17 introduces sales promotions and covers trade-oriented promotions

in detail However, the treatment of trade promotions is scaled back in

com-parison to the previous edition as it looks primarily at the most important and

troubling form of trade promotion: trade allowances

• Chapters 18 and 19 deal with consumer-oriented forms of sales promotions

Whereas all forms of consumer-oriented promotions were covered in a single

chapter in the previous edition, these topics are included as two separate ters in the seventh edition Chapter 18 covers only sampling and couponing,and Chapter 19 examines all remaining forms of consumer promotions.

chap-• Chapter 20 provides updated coverage of marketing-oriented public relationsalong with event- and cause-oriented sponsorships

A Premier Instructional Resource Package

The resource package provided with Advertising, Promotion, and Other Aspects of

Integrated Marketing Communications, seventh edition, is specifically designed to

meet the needs of instructors facing a variety of teaching conditions and toenhance students’ experience with the subject We have addressed both the tradi-tional and the innovative classroom environments by providing an array of high-quality and technologically advanced items to bring a contemporary, real-worldfeel to the study of advertising, promotion, and integrated marketing communica-tions

• Instructor’s Manual This comprehensive and valuable teaching aid includes

the Resource Integration Guide, a list of chapter objectives, chapter maries, detailed chapter outlines, teaching tips, and answers to discussion

sum-questions The Instructor’s Manual for this edition is revised by Laurie A Babin

of the University of Southern Mississippi

• Test Bank The Test Bank, also revised by Laurie A Babin, provides testing

items for instructors’ reference and use It has been thoroughly revised andcontains over 1,500 multiple-choice, true/false, and essay questions in varyinglevels of difficulty

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Softwareis an easy-to-use test creation software compatible with MicrosoftWindows Instructors can add or edit questions, instructions, and answers,and select questions by previewing them onscreen; select them randomly, orselect them by number Instructors can also create and administer quizzesonline, whether over the Internet, a local area network (LAN), or a wide areanetwork (WAN)

• PowerPoint Presentation CD This edition includes an updated and improved

PowerPoint presentation The presentation contains award-winning Cliovideo clips, numerous still pictures, and animations This powerful software iseasily adaptable for instructors who wish to introduce additional material Thepresentation covers all of the material found in the textbook in addition to out-side supplemental examples and materials from various media

• Video Package The video package provides a relevant and interesting visual

teaching tool for the classroom Each video segment gives students the tunity to apply what they are learning to real-world situations and enablesinstructors to better illustrate concepts Companies such as Timberland, TowerRecords, Pfizer, and Radio Shack are featured

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Comprehensive Web Site

Visit the text Web site at http://shimp.swlearning.com to find instructor’s support

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they learned in class

Instructor Resources

• Downloadable Instructor’s Manual files available in Microsoft Word and

Adobe Acrobat format

• Downloadable PowerPoint Presentations prepared by Elizabeth Hurley of

Editors, Inc (Available for download without embedded videos only.)

• A Resource Integration Guide helps instructors coordinate all of the print and

online resources available for each chapter to help in their teaching and to

facilitate their students’ coursework

• The Business & Company Resource Center provides online access to a wide

variety of global business information including current articles and business

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stock quotes, and much more Unlike other online resources, this

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View a guided tour of the Business & Company Resource Center at http://

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Student Resources

Product Support Site (http://shimp.swlearning.com)

• Online Interactive quizzes for each chapter are available to those students

who would like extra study material After each quiz is submitted, automatic

feedback tells the students how they scored and what the correct answers are

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directly to their instructor

• Flashcards pulled from the key terms in the text help students study the

vocabulary covered in the text

1pass™

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using a single, personalized username and password—no more multiple URLs

and login information to remember! Shimp 1pass at http://1pass.thomson.com

includes access to Shimp Xtra! and Business & Company Resource Center (BCRC)

• Shimp Xtra! (http://shimpxtra.swlearning.com)

This interactive product provides additional support for students and special

insights into the field of advertising that are not offered in the main text

Components include: Xtra! Quizzing designed to prepare students for exams;

award-winning Clio video clips designed to show students how advertising

works in the real world with the creative examples of advertising worldwide;

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I sincerely appreciate the thoughtful comments from the colleagues who critiqued

the sixth edition and recommended changes and improvements Previous editions

also have benefited from the many useful comments from the following

review-ers, friends, and acquaintances, whose affiliations may have changed since

reviewing this text:

Western Illinois University

Karen Faulkner Walia

Long Beach City College

Liz Yokubison

College of DuPage

My appreciation extends to a number of former Ph.D students, my friends,who have shared their experiences in using the textbook and have provided valu-able suggestions for change: Avery Abernethy, Auburn University; CraigAndrews, Marquette University; Mike Barone, Iowa State University; Paula Bone,West Virginia University; Tracy Dunn, Benedict College; Ken Manning, ColoradoState University; David Sprott, Washington State University; Elnora Stuart,American University of Cairo; and Scott Swain, Boston University.

I also appreciate the work of several MBA students who were of considerableassistance on the present or previous editions: Andrew Johnson, Yenseob (Cklio)Lee, Michael Shipe, Barbara Yale, and Yun J Yang

Appreciation is extended to two special friends First, though not involved inthis edition, Professor Jack Lindgren, University of Virginia, developed the multi-media supplements that served in prior editions to create an exciting, dynamic,and enjoyable teaching environment for adopters of the text Second, sincereappreciation is extended to my colleague, Professor Satish Jayachandran, for hisinvaluable suggestions regarding chapter sequencing and material coverage.Further appreciation goes out to my friends at the Dryden Press who I workedwith for nearly 20 years during the first five editions I am grateful to Mary Fisher,Rob Zwettler, Lyn Hastert, Lise Johnson, and Bill Schoof

Finally, I very much appreciate the excellent work of the Western team for their outstanding efforts in bringing this seventh edition tofruition I especially appreciate the support and guidance of Susan Smart; theencouragement of Neil Marquardt and Melissa Acuña; the extensive productionmanagement by Emily Gross; the marketing efforts of Nicole Moore; the profes-sional editing by Heather Savage; the work by permissions and photo researchersJohn Hill, Susan van Etten, and Diana Fleming; and the creativity of the technol-ogy group in preparing the Web site and its contents

Thomson/South-Terence A ShimpUniversity of South CarolinaAugust 2005

Terence A Shimp received his doctorate from the University of Maryland andtaught for four years at Kent State University before moving to the University ofSouth Carolina, where he has been a faculty member for 29 years He is Professor

of Marketing, the W W Johnson Distinguished Foundation Fellow, and Chair ofthe Marketing Department in the Moore School of Business, University of SouthCarolina, Columbia Professor Shimp teaches courses in marketing communica-tions and research philosophy and methods He has earned a variety of teachingawards, including the Amoco Foundation Award that named him the outstandingteacher at the University of South Carolina in 1990

He has published widely in the areas of marketing, consumer behavior, and

advertising His work has appeared frequently in outlets such as the Journal of

Consumer Research, Journal of Marketing Research, Journal of Marketing, Journal of Advertising, Journal of Advertising Research, Journal of Consumer Psychology, and the Journal of Public Policy and Marketing “Endorsers in Advertising: The Case of

Negative Celebrity Information,” co-authored with Brian Till, was named the

out-standing article published in the Journal of Advertising in 1998 “A Critical

Appraisal of Demand Artifacts in Consumer Research,” published with Eva Hyatt

and David Snyder in the Journal of Consumer Research received that journal’s award

for the top article published during the period 1990–1992 In 2001 he was therecipient of the American Academy of Advertising’s lifetime award for outstand-ing contributions to research in advertising The Society for Consumer Psychologyelected him a Fellow of the Society in 2003

Professor Shimp is past president of the Association for Consumer Research

and past president of the Journal of Consumer Research policy board He has served

on the editorial policy boards of many premier journals, including the Journal of

Consumer Research, Journal of Consumer Psychology, Journal of Marketing, Marketing Letters, Journal of Public Policy & Marketing, and the Journal of Advertising He has

represented the Federal Trade Commission and various state agencies as an expertwitness in issues concerning advertising deception and unfairness

Alternative Offline Advertising

Media and Mass Online

Media Planning and Analysis

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velit eu mi Morbi ultricies libero eget odio Lorem ipsum dolorsit amet, consectetuer adipiscing elit Fusce massa Nullam cur-

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CHAPTER 1

Overview of Integrated

Marketing Communications and

the Marcom Process

CHAPTER 2

Marcom’s Challenges:

Enhancing Brand Equity,

Influencing Behavior, and Being

Part One introduces students to the fundamentals of

inte-grated marketing communications (IMC) Chapter 1 overviews

IMC and discusses the importance of marketing cations (marcom) The chapter emphasizes the need for inte-grating the various marketing communication elements (adver-tising, sales promotions, event marketing, etc.) rather thantreating them as separate and independent tools The payofffrom an IMC approach is synergy—multiple tools workingtogether achieve more positive communication results than dothe tools used individually The chapter describes five key IMCfeatures: (1) the customer is the starting point for all marcomdecisions; (2) brand managers and their agencies should beamenable to using various marcom tools; (3) multiple mes-sages delivered by different marcom tools must be unified; (4)the objective is to build relationships with customers; and (5)marcom’s ultimate objective is to affect customer behavior

communi-A model of the marcom decision-making process also isintroduced in Chapter 1 This integrative framework postulatesthe marcom program as consisting of a set of fundamentaldecisions (about targeting, positioning, etc.) and a series ofimplementation decisions that determine program outcomeswith regard to enhancing brand equity and affecting behavior.The final model component is program evaluation, whichentails measuring the results of communications activities,providing feedback, and taking corrective action

Chapter 2 explains how IMC enhances brand equity,

influ-ences behavior, and achieves accountability A brand equitymodel conceptualizes brand equity from the customer’s per-spective and shows how equity is enhanced by elevating brandawareness and creating brand associations It is explained thatmarcom’s eventual challenge is to influence customer behaviorand to ultimately affect a brand’s sales volume and revenue,and the return on marketing investment, or ROMI is discussed

Chapter 3 provides a critical transition between the first two

chapters and subsequent chapters It is important that ethical,regulatory, and environmental issues be examined so as to fullyappreciate that marketing communicators operate under con-straints that limit certain actions yet ultimately benefit freemarkets and the businesses and customers who participate inthem The ethical issues discussed included targeting vulnerablegroups, deceptive advertising, and other types of unethicalmarcom practices Also covered are governmental regulations,industry self-regulation of marcom practices and environmentalissues relevant to marcom decisions are explored

Integrated Marketing

Communications: Processes,

Brand Equity, and the

Marcom Environment

the Buick line of vehicles A series of five-minute filmsfeaturing this famous golfer were available at Buick’sWeb site (http://www.buick.com) With a 30-secondcommercial that was widely aired on network and cablestations, Buick encouraged consumers to visit its Website Visitors to the site were able to enter a contest

that provided winners an opportunity

to play a round of golfwith Tiger Woodsand a chance towin a Rainier vehicle.Only two months afterinitiating this program, two millionunique visitors were drawn to Buick’s Web site, aware-ness of the Rainer SUV increased by 70 percent, andpositive perceptions of Buick rose by 122 percent.1

Marcom in a B2B Environment According to a

recent study, four out of five B2B marketers use someform of integrated marketing communications In fact,over three-fourths of those firms using integrated cam-paigns employ three or more different communicationelements, such as, for example, using a magazineadvertising campaign along with TV advertising, anonline presence, and a direct mail program.2

An integrated communications program taken by General Electric (GE) illustrates a successfulB2B application of integrated marketing communi-cations.3To raise awareness of GE’s products beyondits well-known lighting and appliance offerings, GE

under-Overview of Integrated

Marketing Communications

and the Marcom

Process

All firms employ marketing communications to one

degree or another, and it doesn’t matter whether their

efforts are directed at people like you and me in our

day-to-day consumption activities or focused on other

businesses In short, marketing communications play

an important role for all companies This vignette

pro-vides examples of two integrated

business-to-business (B2B) environment Though

most readers of this text are thoroughly acquainted

with B2C applications by virtue of frequent exposure to

advertisements and other forms of marketing

communi-cations, relatively few have acquired experience in B2B

situations Hence, it is important to appreciate at the

out-set that marcom concepts and practices are applicable

universally, regardless of the type of organization

involved

Marcom in a B2C Context When Buick introduced

its Rainier sports utility vehicle (SUV), it needed a

mar-keting communications program that would create

awareness for the Rainier and enhance the image of

the Buick name These tasks were accomplished with an

integrated program combining online and TV

adver-tising along with appealing sales promotions The job

was made easier by hiring Tiger Woods as endorser of

Marcom Challenge:

B2C and B2B Applications

of IMC

Work” to establish that it also is successful in producing

wind power, security systems, and jet engines, among

other products Working with its advertising agency

(BBDO New York), GE’s objective was to increase

aware-ness that GE is a company that does more than

manu-facture lightbulbs and appliances Using a combination

of TV, print (magazine ads in business publications such

as BusinessWeek, Forbes, and Fortune), and online

advertising, GE and its ad agency undertook an

inten-sive campaign to improve businesspeople’s understanding

of GE’s diverse product offerings For example, a clever

TV advertisement dramatically illustrated that GE produces

jet engines by showing a vintage Wright Brothers-era

airplane equipped with a modern GE jet engine

1

Introduce the topic of marketing communications (marcom) and identify the tools used by practitioners.

2

Describe the philosophy and practice

of integrated marketing communications (IMC).

Distinguish some of the important trade associations

in the marcom field.

JOB OUTLOOK

A National Association of

Colleges and Employers survey

found that starting salaries for

marketing majors graduating

in 2003 averaged $34,038;

starting salaries for advertising

majors averaged $29,495,

but

salaries for experienced analysts

and managers range from

$65,000 into the six figures

by 40 percent, and perceptions of GE as being dynamic increased by 50 percent Byany standard, this was a successful integrated campaign that combined multiplecommunication elements to positively alter perceptions of GE

The Nature of Marketing Communications

Marketing communications is a critical aspect of companies’ overall marketingmissions and a major determinant of their successes or failures The importance ofthe marketing communications component of the marketing mix has increaseddramatically in recent decades Indeed, it has been claimed that marketing andcommunications are virtually inseparable.4 All organizations—whether firmsinvolved in B2B exchanges, companies engaged in B2C marketing, or organiza-tions delivering not-for-profit services (museums, symphony orchestras, charitableorganizations, etc.)—use various forms of marketing communications to promotetheir offerings and achieve financial and nonfinancial goals

The primary forms of marketing communications include traditional massmedia advertising (TV, magazines, etc.); online advertising (Web sites, opt-ine-mail messages, text messaging, and so on); sales promotions (such as samples,coupons, rebates, and premium items); store signage and point-of-purchasecommunications; direct-mail literature; marketing-oriented public relations andpublicity releases; sponsorships of events and causes; presentations by salespeo-ple; and various collateral forms of communication devices (See Table 1.1 for alisting of various marketing communication elements.) Collectively, these com-

munication tools and media constitute what traditionally has been termed the

pro-motion component of the marketing mix (You will recall from your introductory

marketing course that the so-called marketing mix includes four sets of

interre-lated decision areas: product, price, place, and promotion.) Although the “4P” terization has led to widespread use of the term promotion for describing commu- nications with prospects and customers, the term marketing communications is

charac-preferred by most marketing practitioners as well as by many educators In this

text we use marketing communications to refer to the collection of advertising, sales

promotions, public relations, event marketing, and other communication devices;

comparatively, we reserve promotions as a shorthand reference to sales

promo-tions The text devotes coverage to all of these topics except personal selling,which is a subject that is better treated in a stand-alone course devoted exclusively

to that topic

Marketing Communications at the Brand Level

Marketing communicators in their various capacities (as advertisers, sales tion specialists, salespeople, public relations professionals, etc.) develop anddeliver messages regarding different types of marketing topics: products, services,stores, events, and even people Although these terms capture different forms of

promo-marketing foci, one term will suffice as a summary means for describing all forms

of marketing focus That term is brand The Buick Rainier is a brand So are Red

Bull, Evian, Guinness, McDonald’s, Levi’s, Motorola, Sony, Intel, Microsoft,MasterCard, Amazon.com, Kodak, IBM, Dell, Honda, Mercedes-Benz, and the listgoes on The point that deserves particular emphasis is that most marketing com-munications occurs at the brand level

S OURCE : Adapted from Figure 1 in Kevin Lane Keller, “Mastering the Marketing Communications Mix: Micro and Macro

Perspectives on Integrated Marketing Communication Programs,” Journal of Marketing Management, 2001, 17, 823–851.

• External store signs

• In-store shelf signs

• Shopping cart ads

• In-store radio and TV

5 Trade- and Oriented Promotions

Consumer-• Trade deals and buying allowances

• Display and advertising allowances

• Trade shows

• Cooperative advertising

• Sponsorship of arts, fairs, and festivals

• Sponsorship of causes

7 Marketing-Oriented Public Relations and Publicity

8 Personal Selling

Discussion throughout this text focuses on brand-level marketing

communica-tions It is critical for students to fully appreciate that the term brand is a

conve-nient (and appropriate) label for describing any object of concerted marketing

efforts It could be a product, a service, a retail outlet, a media company, or even a

person

A well-known and respected brand is an invaluable asset Brands perform a

critical strategic role by providing a key means for differentiating one company’s

offering from those of competitive brands From the consumer’s perspective,

respected brands offer an assurance of consistent performance and provide a

sig-nal of whatever benefits consumers seek when making purchase decisions in

par-ticular product categories More than this, a brand is a covenant with the

con-sumer whereby the mere mention of the name triggers expectations about what

the brand will deliver in terms of quality, convenience, status, and other critical

buying considerations.5Consider what a senior marketing executive at Procter &

Gamble (P&G)—historically one of the world’s best marketing organizations—

has to say about the roles performed by several of P&G’s respected brands:

When you [the consumer] have a brand like Tide [detergent], you don’t have to think a lot

about it You know that it’s going to give you the best performance, the best value and get

the job done without question Great brands bring an element of simplicity to what is a

very complex world I believe as strongly as I possibly could that we’re [i.e., P&G] going to

be selling Tide and Crest and Pampers and Folgers and Downy 50 years from now, and

they’re going to be bigger and better than they are today 6

The Integration of Marketing

Communications

Mountain Dew is a well-known brand that is consumed by millions of

predomi-nately young consumers On the market for more than 30 years, Mountain Dew

is positioned as a brand that stands for fun, exhilaration, and energy—FEE for

short Brand managers have been consistent over time and across communication

media in maintaining the FEE theme that represents the brand’s core meaning—its positioning Various advertising media, event sponsorships, and consumerpromotions have been employed over the years to trumpet the brand’s core mean-ing Advertisements placed during the Super Bowl, which reaches in excess of 90million people, as well as local TV and radio spots, are used to appeal to thebrand’s primary and secondary targets Event sponsorships provide a major com-munication medium for Mountain Dew, which has sponsored leading alternativesports competitions such as ESPN’s X Games and NBC’s Gravity Games In addi-tion to these prominent sponsorships, Mountain Dew also hosts a variety ofsmaller events that draw audiences as small as 5,000 people Appealing giveawayitems (T-shirts, videos, branded snowboards and mountain bikes, etc.) are distrib-uted at these events to generate excitement and foster positive connectionsbetween the Mountain Dew brand and its loyal consumers.

Much of Mountain Dew’s success over the years is attributable to its brandmanagers having dedicated themselves to presenting consistent messages aboutthe brand, both over time and across communication media By contrast, manycompanies treat the various communication elements—advertising, sales promo-tions, public relations, and so on—as virtually separate activities rather than asintegrated tools that work together to achieve a common goal Personnel respon-sible for advertising sometimes fail to adequately coordinate their efforts withindividuals in charge of sales promotions or publicity The lack of integration wasmore prevalent in the past than currently, but many brands still suffer from poorlyintegrated marketing communications programs

Current marketing philosophy holds that integration is absolutely imperative

for success Integrated marketing communications, or simply IMC, is the philosophy

and practice of carefully coordinating a brand’s sundry marketing tions elements The logic underlying integration seems so crystal clear and com-pelling that the student may be wondering: Why is this such a big deal? Whyhaven’t firms practiced IMC all along? Why is there reluctance to integrate? Goodquestions, all, but what sounds reasonable in theory is not always easy to put intopractice.7Organizations traditionally have handled advertising, sales promotions,point-of-purchase displays, and other communication tools as virtually separatepractices because different units within organizations have specialized in separate

communica-aspects of marketing communications—advertising, or sales promotions, or public

relations, and so on—rather than having generalized knowledge and experiencewith all communication tools Furthermore, outside suppliers (such as advertisingagencies, public relations agencies, and sales promotion agencies) also havetended to specialize in single facets of marketing communications rather than topossess expertise across the board

There has been a reluctance to change from this single-function, specialist modeldue to managerial parochialism (e.g., advertising people sometimes view the worldexclusively from an advertising perspective and are blind to other communicationtraditions) and for fear that change might lead to budget cutbacks in their areas ofcontrol (such as advertising) and reductions in their authority and power.Advertising, public relations, and promotion agencies also have resisted change due

to reluctance to broaden their function beyond the one aspect of marketing nications in which they have developed expertise and built their reputations.However, in recent years a number of advertising agencies have expandedtheir roles by merging with other companies or creating new departments thatspecialize in the growth areas of sales promotions, marketing-oriented public rela-tions, event sponsorship, and direct marketing Many firms, including suppliers

commu-of marketing communication services, along with their brand-manager clients,have increasingly adopted an integrated approach to their communication activi-ties.8Although IMC received its primary initial acceptance by manufacturers ofconsumer packaged goods, the practice has also been adopted by numerous retailand service marketers.9

AP Topic Gallery

Skeptics have suggested that IMC is little more than a management fashion

that is short lived,10but evidence to the contrary suggests that IMC is not fleeting

but rather has become a permanent feature of the marketing communications

landscape around the world and in many different types of marketing

organiza-tions.11 As an IMC pioneer describes it, “Integration just plain makes sense for

those planning to succeed in the 21stcentury marketplace Marketers,

communica-tors, and brand organizations simply have no choice.”12In the final analysis, the

key to successfully implementing IMC is that brand managers, who represent the

client side, must closely link their efforts with outside suppliers of marketing

com-munications services (such as ad agencies), and both parties must be committed to

assuring that all communication tools are carefully and finely integrated.13

Although there is movement toward increased implementation of IMC, not all

brand managers or their firms are equally likely to have adopted IMC In fact,

experienced managers are more likely than novice managers to practice IMC

Firms involved in marketing services (rather than products) and B2C (versus B2B)

companies are more likely to practice IMC More sophisticated companies also are

likely adherents to IMC.14All said, though achieving integration is easier said than

done, it is a goal worth pursuing.15

What Exactly Is IMC?

Proponents of IMC have provided slightly different perspectives on this

man-agement practice Not all educators or practitioners are in perfect agreement

regarding the precise meaning of IMC Notwithstanding these differences, a

work-ing definition is in order The followwork-ing definition reflects this text’s position on the

topic

IMC is a communications process that entails the planning, creation, integration, and

implementation of diverse forms of marcom (advertisements, sales promotions, publicity

releases, events, etc.) that are delivered over time to a brand’s targeted customers and

prospects The goal of IMC is ultimately to influence or directly affect the behavior of the

targeted audience IMC considers all touch points, or sources of contact, that a

cus-tomer/prospect has with the brand as potential delivery channels for messages and makes

use of all communications methods that are relevant to customers/prospects IMC requires

that all of a brand’s communication media deliver a consistent message The IMC process

further necessitates that the customer/prospect is the starting point for determining the

types of messages and media that will serve best to inform, persuade, and induce action 16

The Payoff from IMC: The Value of Synergy

We will shortly identify the key aspects of IMC that are contained in the foregoing

definition First, however, it will be useful to examine the “bottom line” of IMC

What is the payoff from using multiple communication tools and developing

con-sistent, integrated messages? The payoff is that by closely integrating multiple

communication tools and media, brand managers achieve synergy—that is,

mul-tiple methods in combination with one another yield more positive communication

results than do the tools used individually This value of synergy was illustrated in

a study of Levi Strauss’ Dockers brand of khaki pants.17Using sophisticated

analyt-ical techniques, researchers determined that the use of both TV and print

adver-tisements produced a synergistic effect on sales of pants that was significantly

additional to the individual effects of each advertising medium Another study

demonstrated that TV and online advertising used in conjunction produced

posi-tive synergistic effects that were additional to each medium’s individual effects TV

and online advertising used together produced more attention, more positive

thoughts, and higher message credibility than did either medium alone.18

Key IMC Features

Though the preceding definition of IMC is long-winded and certainly not worthcommitting to memory, inherent in the definition are several essential features thatprovide the philosophical foundation for this practice These features are listed inTable 1.2 and require detailed discussion hereafter It is important to note beforeproceeding that these elements are interdependent and that there is no particularorder of importance suggested by the listing in Table 1.2 It also is essential thatstudents recognize that all five features are critical to both understanding thephilosophy of IMC and appreciating what must be accomplished to implementthis philosophy into practice These five features do merit commitment to memory

1 The Customer Represents the Starting Point for All Marketing Communications Activities.An initial key feature of IMC is that the process

should start with the customer or prospect and then work back to the brand

commu-nicator in determining the most appropriate messages and media for informing,persuading, and inducing customers and prospects to act favorably toward thecommunicator’s brand The IMC approach avoids an “inside-out” approach (fromcompany to customer) in identifying communication vehicles and instead startswith the customer (“outside-in”) to determine those communication methods thatwill best serve the customers’ information needs and motivate them to purchasethe brand

The point of this feature is that brand managers and their agencies should notrestrict themselves to only one or a select number of communication media.Rather, the IMC mind-set calls for considering any of numerous options thatmight be appropriate for reaching and influencing any particular target audience.Moreover, the communication media that are best for any one brand and its targetaudience are not necessarily best for another brand/target audience combination.Additionally, the best communication media at the present time in light of thecompetitive environment will not necessarily be the best media in subsequentperiods In short, brand managers and agencies that practice IMC must be nimbleand avoid a one-size-fits-all solution to marketing communications problems.This can be accomplished by using the customer’s information needs as the touch-stone for all marketing communication decisions rather than using past practice

or management preference as the default option when selecting communicationsmethods and media The most important question to pose is this: “what is thecommunications supposed to do or accomplish?”19The choice of appropriate mar-keting communications tools and media naturally flows from the answer to thiskey question

2 Brand Managers and Their Agencies Should Be Amenable to Using Various Marketing Communication Tools.This second element nat-urally extends from the first and its emphasis on starting with the customer Tofully appreciate this second key feature of IMC, it will be useful to draw an anal-ogy between the tools available to marketing communicators (advertising, salespromotions, sponsorships, etc.) and those used by people in craft industriessuch as carpentry, plumbing, and automobile repair Each of these craftsmen pos-sesses a toolbox that is filled with a variety of tools Consider, for example, a car-

Table 1.2

Five Key Features

of IMC

1 Start with the customer or prospect.

2 Use any form of relevant contact or touch point.

3 Speak with a single voice.

4 Build relationships.

5 Affect behavior.

penter’s toolbox, which contains items such as hammers, pliers, screwdrivers,

drills, sanding equipment, and so on When given a new construction or repair

job, carpenters turn to those tools that are most appropriate for the task at hand In

other words, some tools are more appropriate for particular purposes than are

others A carpenter can pound a nail with the blunt end of a screwdriver, but

a hammer can do the job more efficiently Such is the case with marketing

commu-nications: not all tools (again, advertising, sales promotions, sponsorships, etc.)

are equally effective for all jobs Rather, a truly professional marketing

communi-cator selects those tools that are best for the job The toolbox metaphor is a good

way of thinking about what a professional marketing communicator must do—

namely, carefully select those tools that are most appropriate for the communications

objective at hand.

Stated in somewhat different terms, practitioners of IMC need to be receptive

to using all forms of touch points, or contacts, as potential message delivery

chan-nels Touch pointand contactare used here as interchangeable terms to mean

any message medium capable of reaching target customers and presenting the

brand in a favorable light The key feature of this IMC element is that it reflects

a willingness on the part of brand communicators to use any communication

out-lets (i.e., touch points or contacts) that are appropriate for reaching the target

audience Marketing communicators who practice this principle are not

pre-committed to any single medium or subset of media Rather, the challenge and

related opportunity are to select those communication tools that are best at

accomplishing the specific objective that has been established for the brand at

a particular point in time In many respects this amounts to surrounding present

or prospective customers with the brand message at every possible opportunity

and allowing them to use whatever information about the brand they deem most

useful.20An established advertising practitioner has referred to this as “360-degree

branding,” a phrase suggesting that brand messages should be everywhere the

target audience is.21

Brand message touch points include a virtually endless list of possibilities

Consider the following illustrations:

• Brand managers at Procter & Gamble placed the Tide detergent logo on napkin

dispensers in pizza shops and cheesesteak shops in Boston and Philadelphia

These napkin dispensers held napkins imprinted with the Tide logo and the

message “Because napkins are never in the right place at the right time.”

• Jell-O pudding was promoted by affixing stickers with the Jell-O name to

bananas—one product (bananas) was used as a contact channel for reaching

consumers about another (Jell-O)

• In New York City, ads are placed on large vinyl sheets that cover scaffolding at

construction sites These ads sometimes extend for an entire city block and

serve to convey the advertiser’s message in prominent and dramatic fashion

• To promote its television miniseries Traffic, USA Network distributed to

patrons in select bars located in major U.S cities dollar bills affixed with the

miniseries name (See Figure 1.1.)

• Germany’s Puma brand of

ath-letic footwear promoted itself

during soccer’s World Cup hosted

in Japan by spotlighting its new

brand of Shudoh soccer cleats at

sushi restaurants in major cities

around Asia and Europe The

shoes were encased in stylish

dis-plays made of bamboo and glass

and placed on tables at sushi

• Hershey Foods Corp., makers of Hershey’s Kisses among manyother items, has designed a huge display rising 15 stories high inNew York City’s Times Square district The huge structure featuresthousands of chasing lights, multiple steam engines, 380 feet of neonlighting, and a moving message board This huge exposure in ahighly trafficked area has been described as a “massive advertise-ment that is difficult to miss and impossible to zap.”23

• BriteVision Media has designed a unique touch point in the form ofadvertisements on coffee sleeve insulators that are used to protectcoffee drinkers from burning their hands (See Figure 1.2.)

• Mountain Dew, in a particularly clever effort to reach teenagers, whoare difficult to contact via traditional mass media, used beepers totransmit messages every week for a six-month period to over 250,000teenagers As reward for giving their attention to Mountain Dew’smessages, teens had an opportunity to win desirable products such

as Burton snowboards, Killer Loop sunglasses, and other items.24

• The power and scope of the Internet is an especially appealingvenue for touching both customers (in B2B marketing) and con-sumers (in B2C marketing) Coca-Cola, for example, has success-fully used the Internet to reach youthful consumers When youth in

England, Austria, and other European countries want to legally

download music, they can turn to mycokemusic.com (http://mycokemusic.com) and select from up to 250,000 available tracks.Individuals can mix their own tracks and pay about 99 pence (equal to about

$1.84 at the time of this writing) per track or as little as 69 pence ($1.28) whenbuying songs in bundles A senior analyst at Forrester Research, a researchfirm that studies the Internet, expressed the view that “this is a way of makingbrands like Coca-Cola more hip and a way of connecting with younger con-sumers It might not make Coca-Cola lots of money, but it’s a way of gettingthe Coke name out there.”25

• Marketers of Hollywood movies have experienced a dramatic increase in thecost of promoting new flicks Though TV represents a major medium for intro-ducing consumers to new movies and exciting them about going to the theater,movie marketers have sought cheaper touch points to augment televisionadvertising Twentieth Century Fox devised a creative solution to movie mar-keting by partnering with the owner of 125 shopping malls Under an exclu-sive deal, new movies from Twentieth Century Fox are advertised on hugebanners in mall garages, on tray liners in restaurants, and elsewhere in malls.Mall marketing of new movies provides a means of reaching teens and youngadults who are difficult to reach by traditional advertising media.26

The foregoing illustrations have made it clear that adherents to IMC are nottied to any single communication method (such as mass media advertising) butinstead use whatever touch points and contact methods best enable the communi-cator to deliver brand messages to targeted audiences The IMC objective is toreach the target audience efficiently and effectively using whatever touch pointsare most appropriate Television advertising, for example, may be the bestmedium for contacting the audience for some brands in some situations, whileless traditional (and even unconventional) contact methods may best serve otherbrands’ communication and financial needs The chairman and chief executiveofficer of Young & Rubicam, a major Madison Avenue ad agency, succinctly yeteloquently captured the essence of the foregoing discussion when stating, “At theend of the day, we [i.e., marcom agencies] don’t deliver ads, or direct mail pieces,

or PR and corporate identity programs We deliver results.”27

Many brand managers have concluded that traditional mass media advertisingoften is too costly and ineffective In fact, the advertising industry is experiencing

Emile Wanstecker/Bloomberg News/Landov

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fierce criticism and is in the throes of major change due to the fact that many keters consider traditional advertising, especially network television, too frag-mented and excessively expensive—not to mention the threat of personal videorecorders of the TiVo variety, which have reduced consumers’ exposure to adver-tisements inasmuch as skipping commercials is possible with this technology.28

mar-Hence, professional communicators must be receptive to using whatever touchpoints are most efficient and effective for accomplishing the job For a final example

of an alternative type of touch point, see the Global Focus.

3 Multiple Messages Must Speak with a Single Voice Inherent in thephilosophy and practice of IMC is the demand that a brand’s assorted communi-cation elements (advertisements, point-of-purchase signage, sales promotions,event sponsorships, etc.) must all strive to present the same message and conveythat message consistently across diverse message channels, or points of contact

Marketing communications must, in other words, speak with a single voice.

Coordination of messages and media is absolutely critical to achieving a strongand unified brand image and moving consumers to action.29

The failure to closely coordinate all communication elements can result in cated efforts or—worse yet—contradictory brand messages A vice president ofmarketing at Nabisco fully recognized the value of speaking with a single voicewhen describing her intention to integrate all the marketing communication con-tacts for Nabisco’s Oreo brand of cookies This executive captured the essentialquality of “single voicing” when stating that, under her leadership, “whenever con-sumers see Oreo, they’ll be seeing the same message.”30A general manager at Mars,Inc., maker of candy products, expressed a similar sentiment when stating, “Weused to look at advertising, PR, promotion plans, each piece as separate Now everypiece of communication from package to Internet has to reflect the same message.”31

dupli-In general, the single-voice principle involves selecting a specific positioningstatement for a brand Apositioning statementis the key idea that encapsulateswhat a brand is intended to stand for in its target market’s mind and then consis-tently delivers the same idea across all media channels IMC practitioners, such asOreo’s vice president of marketing and Mars, Inc.’s general manager, know it iscritical that they continually convey the same message on every occasion wherethe brand comes into contact with the target audience A framework presentedlater in the chapter will further discuss the important role of positioning, andChapter 5 will cover the topic of positioning in detail as it applies in an adver-tising context It is important to note that some marketers rail against the idea

that a brand should have a single positioning Indeed, the IMC Focus presents an

alternate view, termed “brand journalism,” that was propounded by food giantMcDonald’s global chief marketing officer

An outdoor media company in Denmark devised a creative way to

reach consumers with advertising messages The company gives

parents of newborn babies free use of high-quality baby carriages

(a.k.a buggies) However, as always, there is no free

lunch: parents receive free buggies only by

agreeing to have a corporate sponsor’s

name applied to the side of the

car-riage Advertisers pay a one-time

fee of $750 per baby carriage to

have their corporate or brand names

displayed When accepting the free baby

carriage deal, parents also agree to have their names

and addresses released to companies that market baby products and

services From the advertiser’s perspective, there would seem to be little downside to this form of advertising unless carriages displaying their logos are wheeled around by people whose character- istics fail to match the sponsor’s desired image.

lL

global focus

4 Build Relationships Rather Than Engage in Flings A fourth

charac-teristic of IMC is the belief that successful marketing communication requires

building relationships between brands and their consumers/customers A

rela-tionshipis an enduring link between a brand and its customers.32It can be argued,

in fact, that relationship building is the key to modern marketing and that IMC is

one of the keys to relationship building.33 Successful relationships between

cus-tomers and brands lead to repeat purchasing and perhaps even to loyalty toward

a brand The importance of relationship building has spawned the growth of an

entire industry of consultants and software suppliers who are involved in the

practice of customer relationship management, or CRM Companies that hire

these consultants and use their software programs have learned that it is more

profitable to build and maintain relationships than it is to continuously search for

new customers The value of customer retention has been compared to a “leaky

bucket,” the logic of which is nicely captured in the following quote:

As a company loses customers out of the leak in the bottom of the bucket, they have to

con-tinue to add new customers to the top of the bucket If the company can even partially plug

the leak, the bucket stays fuller It then takes fewer new customers added to the top of the

bucket to achieve the same level of profitability It’s less expensive and more profitable to

keep those customers already in the bucket Smart business people realize that it costs five

to 10 times more to land a new customer than to keep a customer they already have They

also recognize that increasing the number of customers they keep by a small percentage can

double profits 34

There are myriad ways to build brand/customer relationships One

well-known method is the use of frequent-flyer and other so-called frequency, loyalty,

or ambassador programs All these programs are dedicated to creating customers

who are committed to a brand and encouraging them to satisfy most of their

prod-uct or service needs from offering organizations.35Airlines, hotels, supermarkets,

and many other businesses provide customers with bonus points—or some other

form of accumulated reward—for their continued patronage

Relationships between brand and customer also are nurtured by creating

brand experiences that make positive and lasting impressions This is done by

cre-ating special events or developing exciting venues that attempt to build the

sensa-tion that a sponsoring brand is relevant to the consumer’s life and lifestyle For

example, Toronto-based Molson beer conducted the Molson Outpost campaign

that took 400 sweepstakes winners on a weekend escapade of outdoor camping

and extreme activities such as mountain climbing Lincoln automobiles, a sponsor

of the U.S Open tennis tournament, converted an unused building at the USTA

National Tennis Center into a complex that immersed visitors into the history of

tennis The building featured soundstages, faux docks with real water, and images

of the evolution of tennis around the world Some 30,000 leads were obtained

from people interested in Lincoln automobiles, prompting Lincoln’s marketing

communications coordinator to comment that “experiential marketing is

permeat-ing our entire marketpermeat-ing mix.”36

5 Don’t Lose Focus of the Ultimate Objective: Affect Behavior A

final IMC feature is the goal to affect the behavior of the target audience This means

that marketing communications must do more than just influence brand

aware-ness or enhance consumer attitudes toward the brand Instead, successful IMC

requires that communication efforts be directed at encouraging some form of

behavioral response The objective, in other words, is to move people to action We

must be careful not to misconstrue this point An IMC program must be judged,

ultimately, in terms of whether it influences behavior; but it would be simplistic

and unrealistic to expect an action to result from every communication effort

Prior to purchasing a new brand, consumers generally must be made aware of the

brand and its benefits and be influenced to have a favorable attitude toward

it Communication efforts directed at accomplishing these intermediate, or behavioral, goals are fully justified Yet eventually—and preferably soonerthan later—a successful marketing communications program must accomplishmore than encouraging consumers to like a brand or, worse yet, merely familiar-izing them with its existence This partially explains why sales promotions anddirect-to-consumer advertising are used so extensively—both practices typicallyyield quicker results than other forms of marketing communications such asadvertising

pre-To better understand IMC’s behavior-affecting objective, consider the situationfaced by producers of natural food products Research conducted to gauge con-sumers’ feelings about 10 natural products (free-range chickens, organic fruits,and so on) revealed that natural products had a good image but not many peoplewere buying them Only 6 percent of the sampled consumers had purchased free-range chickens during the year preceding the survey, yet 43 percent thought thatfree-range chickens were superior to conventional chickens.37This is a classic illus-tration of buyer behavior not following directly from attitudes In a case such asthis, the goal of marketing communications would be to convert these good feel-ings toward natural products into product consumption—it does little good tohave consumers like your product but not to buy it

A similar challenge confronts antismoking proponents Although most peopleunderstand intellectually that smoking causes cancer, emphysema, and other ail-ments, these same people often think that cancer and other problems will happen

to other smokers but not to them Hence, antismoking ads may serve to make

That Positioning Is

Out of Date

At important conferences among marketing and advertising

practitioners in 2004, Larry Light, McDonald’s global chief

market-ing officer, declared that “the days of mass marketmarket-ing as we know

it are over.” Light challenged the prevailing view that brands must

have a single message appeal, or positioning He declared that

it is passé and out of touch to employ a single brand positioning

in a world where audiences are fragmented and brands possess

multiple attributes and benefits “A brand is multidimensional.

No one communication, no one message can tell a whole

brand story.”

This heretical viewpoint is not

par-ticularly surprising coming from an

executive of a company with a

global marketing budget exceeding

$1 billion and which has nearly 50

mil-lion consumers spread over 119 countries

where its fast-food outlets are located Obviously, the

identi-cal message likely would not be equally successful in different

countries with diverse cultures and varying attitudes regarding the

role of fast food.

Light has offered an alternative approach to brand marketing

that he refers to as “brand journalism.” Using journalism as a

metaphor for advertising, his point essentially is that brand

mar-keters can tell different stories about their brands, just like journalists

tell different stories about the same basic topic For example, a

journalist might write a series of several articles about a politician,

with each article telling a different story about the politician’s

back-ground, philosophy, and likelihood of being elected In a similar

vein, many stories about a com- plex brand such as McDonald’s can be presented to the same audience, and different stories told to different audiences.

Though portraying the concept of “brand journalism” as thetical to the well-established practice of positioning, it would seem that McDonald’s global chief marketing officer really is not claiming that developing a unified message is a bad idea.

anti-Surely, a brand would suffer in the place if it told multiple stories that were inconsistent or conflicting Rather, as I interpret Light’s argu- ment, a brand needs to come up with a big creative idea and then deliver the essence of that idea by presenting different stories to the same or different audience—but all stories should be based on conveying the “big idea.” Light calls this “brand journalism” and distinguishes it from positioning, but the difference between these concepts is nuanced at best Both are based on the philosophy that consistency is important The tra- ditional concept of brand positioning surely does not demand that just a single story be told about a brand.

Age, June 21, 2004, 1, 31; Hilary Chura, “McDonald’s Pulls Further Away from

Mass Marketing,” AdWatch: Outlook 2004, http://www.adage.com (accessed July

14, 2004); Danielle Veldre, “CMO Light Out to Tell the McDonald’s Story,”

http://www.bandt.com.au (accessed July 14, 2004).

i m c f o c u s

people aware of the problems associated with smoking, but such campaigns are

ineffective if people continue to smoke The IMC goal in such a case is to develop

more compelling advertisements that influence smokers to discontinue this

prac-tice A creative approach other than the standard smoking-is-bad-for-you message

is needed to redirect behavior Appeals to normative influences (e.g., “smoking is

uncool” or “only losers smoke”) may represent a superior tack in the antismoking

initiative to reduce this unhealthy practice, particularly among teenagers

Changes in Marketing Communication Practices

The adoption of an IMC mind-set necessitates some fundamental changes in the

way marketing communications have traditionally been practiced The following

interrelated changes are particularly prominent

Reduced Dependence on Mass Media Advertising

Many marketing communicators now realize that communication methods other

than media advertising often better serve the needs of their brands As noted

pre-viously, the objective is to contact customers and prospects effectively; media

advertising is not always the most effective or cost-efficient medium for

accom-plishing this objective But of course this does not mean that media advertising is

unimportant or in threat of extinction The point instead is that other

communica-tion methods should receive careful consideracommunica-tion before mass media advertising is

automatically assumed to be the solution In other words, it is easy to argue that

cheaper, alternative means of communication should be the default option rather

than defaulting to mass media advertising

As alluded to previously, many brand managers and their agencies have

reduced the role of TV advertising, especially during network (versus cable)

pro-grams, in their marcom budgeting Part of this is simply due to the fact that TV

advertising is not as effective or cost-efficient as it once was due to audience

frag-mentation and the availability of many alternative entertainment options

Moreover, other advertising and non-advertising communication tools often are

superior to TV in achieving brand managers’ objectives Consider, for example,

Unilever’s brand of Wisk detergent This brand was historically advertised

heav-ily on TV Recently, however, Wisk’s brand managers devised a media plan that

reaches people at “the point of dirt.” This approach calls for using billboard

adver-tising directing consumers to a Wisk Web site and placing messages near

ball-parks, playgrounds, and other touch points where kids get dirty.38TV advertising

is minimized with this approach, though only time will tell whether the

point-of-dirt approach is an effective alternative

In the spirit of reducing dependence on TV advertising, McCann Worldgroup,

a highly respected advertising agency, has developed the concept of a

media-neutral approach when counseling its clients in selecting appropriate marcom tools.

This approach requires that the brand marketer first identify the goal(s) a marcom

program is designed to accomplish (building brand awareness, creating buzz,

influencing behavior, etc.) and then identify the best way to allocate the

mar-keter’s budget.39 This media-neutral approach is perfectly in accord with our

earlier discussion about selecting the most appropriate communication tool given

the task at hand Analogously, a hammer may be the best tool for a carpenter

when driving nails but not for fastening screws

Increased Reliance on Highly Targeted

Communication Methods

Direct mail, opt-in (permission) e-mailing, specialty interest magazines, cable TV,

and event sponsorships are just some of the contact methods that enable pinpointed

communications that often are less expensive and more effective than mass media